Mean-reversion — RSI Oversold
Enter LONG when RSI < 30 (oversold, expecting a bounce back to the mean) — SL fixed at $5, TP = 1R
Built node by node
- OHLCV (H1) → RSI(14) — RSI uses Wilder RMA (see the formula in the Indicator Guide) — measures whether selling pressure is extreme yet
- Threshold (< 30) — RSI below 30 = oversold — the right side is a fixed constant, so Threshold is used instead of Compare
- Math (add, const_b=5) → SL Calc (fixed) — A trick for creating a constant: Math with no input connected = 0+5 = a series of 5 on every bar → a fixed $5 SL distance
- Signal (long, rr=1) — Mean-reversion only expects a bounce back — RR 1:1 is enough, no need to run it long (win rate needs to compensate)
Nodes used in this recipe
- OHLCV
- Indicator
- Threshold
- Math
- SL Calc
- Signal